Thousands of people overcharged on New Year's Eve

Thousands of credit and debit card users were charged twice for New Year purchases.

January is hard enough on the wallet without having to pay twice for purchases made on New Year’s Eve.

But that’s exactly what’s happened to thousands of people across the country who used their debit or credit card in the run up to the New Year.

It’s all down to a ‘technical error’ with a payment system used in many shops, restaurants and bars.

The error

The problem is related to the card payment system provided to shops, restaurants and bars by Lloyds TSB Cardnet. It means that people using credit and debit cards from a wide variety of providers could find two identical transactions charged against their account.

So if you used a credit or debit card in the shops or to pay for a meal or buy drinks on New Year’s Eve, you could be affected.

It’s estimated that around 200,000 have been double-charged as a result of the error.

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What can you do?

Lloyds have said that all the duplicate charges have been reversed and those affected should already have their money back. But it’s still worth checking your credit and debit card statements if you think that you may have been overcharged.

Lloyds have also set up a helpline on 01268 567100 (option 4) for those concerned about the error.

Into your overdraft

If you’re like me and your balance was hovering around the zero mark after the Christmas period then it’s essential that you make sure you haven’t paid twice.

As we reported in Overdrafts are more expensive than payday loans! fees for going into the red without permission on some accounts can be as high as 40% EAR.

And since the mistake was made by the merchant, your card provider will assume that you have simply overspent and levy the appropriate charges on your account.

Obviously, you will be able to get your money back and reclaim any unfair charges. But filing a complaint with your card provider could take weeks and you may not have full use of your account during this period.

What’s more, any breach of an overdraft or credit limit could impact on your ability to get credit as it will be recorded in your credit history. This is the document that a retailer uses when deciding whether to issue you with a credit card, bank account, mortgage or even mobile phone contract.

No one wants to be rejected for credit. Check out these six ways to make sure that doesn’t happen.

Again, you can rectify any inaccurate credit black-spots on your history by contacting the credit rating agency (Experian, Equifax or Callcredit) and informing them of the error.

For some more information, be sure to have a read of Protect your credit record.

If you are concerned that your credit history may have been affected by this problem then you can get a copy of your own credit report. You can get a free 30-day trial with Experian via lovemoney.com, so head over to our credit report page now to find out how credit-worthy you are (just remember to cancel before the 30 days are up!).

Have a dirt cheap January

For those of you who haven’t been affected by this error but are still suffering from a post-Christmas financial hangover, we’ve got loads of tips and advice on how to have a wallet friendly January.

Read How to have a dirt-cheap January or Save £2,011 in 2011! for some tips on saving money this month or head over to 11 routes to riches in 2011 to find out how to make some extra cash in the next year.

Our how to guides can also help you pay off your debts, build up your savings, avoid scams and earn extra cash.

More: Demand satisfaction from your bank in 2011! Eight New Year’s Resolutions that will change your life